SpaceX’s goal with Starlink is to provide fast and reliable satellite internet service in remote and underserved areas access across the globe. However, the cost of the service has remained a barrier for some potential users. In a move aimed at making its service more accessible, SpaceX has launched a new pricing strategy that could allow more people to overcome that barrier.
First launched in New Zealand, the “Deprioritized Plan,” promises a 50% reduction in monthly fees if you are willing to accept slower internet speeds. First spotted by a Reddit user, the plan is a departure from the traditional pricing model, providing a more affordable option for residential customers.
For NZ$79 (C$66/US$49), users can access the satellite internet system at reduced speeds, compared to NZ$159 (C$133/US$98)for the standard plan. (via PCMag)
This Deprioritized Plan comes with no data or speed caps, but along with the lower speeds, it also offers lower download speeds between 50-100Mbps. This is a significant reduction from the 150-250Mbps available under the standard plan but still provides a viable option for those with less demanding internet needs.
This strategic pricing move could be attributed to SpaceX’s current capacity in New Zealand, which according to their service map, boasts some of the fastest download speeds on the Starlink network, at between 163 and 274 Mbps, compared to Canada which can be as low as 38 to 119 Mbps in Alberta.
The introduction of the Deprioritized Plan may be a clever way to maximize the utilization of SpaceX’s available network capacity in regions with lower demand.
There has been no indication that this Deprioritized Plan will expand to other markets, but if it does, it will likely only be in countries where there is excess capacity available.
In addition to the new cheaper plan, SpaceX is also selling the Starlink hardware for a substantial discount in New Zealand, now just NZ$349 (C$291/US215).
